Not all home buyers purchase a house for the fundamental of reasons, that is, to have a place that he can call home — a place to sleep, eat and enjoy time with family. For a few people who have the nose for business, they buy a house for a better reason. And this reason spells INVESTMENT.
Long term real estate investing
Investment or investing is a business term that signifies both risk and gain. A person places or bets his money to finance a business, buy assets or deposit it in the bank in the hopes of gaining income for risking his money. There are many types of investment opportunities out there that await an investor, but not all of them yield results that one wanted. The investment may earn, but only for a short term. On the extreme side, the investment may earn for a longer term, but the rates of returns are low, like in time deposits. One type of investment that has lesser risk, high returns and with a longer term opportunity is real estate. With real estate investing, risk is almost amounts to nothing.
Home buying provides an investor an opportunity to buy low and sell high. Unlike most types of investment, time is on the side of homeowners. The price of a property bought today doubles up after a few years time. No other types of tangible commodity measures up.
Creativity comes into play
To get the most out of his investment, a real estate investor usually buys a house that needs a couple of fixing here and there. He buys a home with outdated interior design and furniture and dresses it up before offering it for a sale. Although an investor would need money to give the house a face-lift, this strategy however would help him sell his home quicker and with a higher selling price.
Another strategy in order to sell high is to wait for a couple of years before advertising the house to homebuyers. Time adds up to the value of a property and a real estate investor earns high by simply letting the property stand for a few years.
While awaiting the appreciation of home prices, some real estate investors offer their newly bought home for lease. With this strategy, an investor earns monthly from rent and yet he retains ownership of the house. After the lease term, he could anytime offer the house for sale.
Money turned into an asset
For most people, they think of home buying and selling as a simple business transaction that involves two parties: one party buys because he needs a house, while the other party sells because he wants to earn. What many don’t know is that the moment a homebuyer received the Deed of Sale, his money is turned into a home and an asset. Once the house turns into an asset, a homebuyer can enjoy all the benefits of a physical house and the opportunity to earn when he decides to sell the house.
Don’t you think it’s time to make a real estate investment?